Jinwu Financial News | China Gas (00384) is trending positive. As of press release, it reported HK$7.88, up 3.68%, with a turnover of HK$93.7022 million.
According to the news, Daiwa Research and Development reports that since last year, China Gas's stock price has dropped 32% cumulatively, and its semi-annual profit performance has continuously fallen short of expectations. The bank believes that the company's profit risk is limited after this fiscal year, and expects that even if the dividend per share is cut by 10% this year, China Fuel's 6% yield will still be attractive.
The bank believes that the company's natural gas sales are on track, and sales may increase by 9% year-on-year in the second half of the year. The bank indicates that the company's free cash flow from 2024 to 2025 will be at a healthy level, predicting about 2 billion to 3.4 billion yuan per year. Daiwa raised the target price of CNF from HK$6.1 to HK$7.3 and upgraded the rating to “hold”.